Created by: Courtney Bryggman, Christian Perdikis & Jerad Stalinski
Powerade - Prevail
May 07, 2015
The project was given to my group and I, in our Consumer Behavior class. The object of the project was to take notice of up and coming trends going on and then find out what consumers want. Then find a company who is in that industry and design a product for them to get into that specific market and the evidence to back it up. Data was taken directly from sources provided by the school that we had to go and search for.
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Transcript
Created by: Courtney Bryggman, Christian Perdikis & Jerad
Stalinski
Sports Drink User Demographics
Male teen/young adults 62% of age 18-24 drink sports
drinks 49% of men drink sports drinks 33% of women drink sports
drinks
Consumption By Race
Sports Drink’s Problem Recognition
High Fructose Corn Syrup Due to alarming obesity rates consumers are
looking for beverages with different substitutes
No use of ALL NATURAL ingredients PowerAde provides minimal nutritional benefits
other than energy from their formulated Ion4 (a combination of electrolytes)
Different Beverage Options
Organic Has very high restrictions for obtaining the
label “organic” Best alternative to sports beverages Most expensive beverage
All natural Has loose restrictions on the label “all natural” Better alternative to sports beverages Cheaper than Organic, more expensive than
regular beverages
Sports Beverage Industry VS. “All Natural” Beverage
Industry
All Natural Beverages
Since 2009 natural beverages industry has seen 29% growth
With continued growth, prices should eventually decrease
Research indicates that nutrition drives usage 59% of purchases are
driven by consumers drive to have their children eat healthier
Sports Beverage
Consumption has reached a plateau between 2004-2009
Segment remains challenged by growing number of products positioned as alternatives to sports drinks
Overall consumption levels have decreased every year since 2004
Most women hate the taste of sports beverages
Consumption of Natural/Organic
Beverages
86 % said they bought organic/and or natural beverages in the past year
44% buy nearly the same amount of organic/natural beverages from the previous year
25% are buying even more organic/natural products than the previous year
PowerAde Prevail
Prevail is going to be an all-natural addition to PowerAde's product line
Contain natural ingredients such as Sea salt additive Electrolyte enhanced Stevia sweetener Fiber
Slimmer bottle design made with bio-degradable plastic
Industry Competition
Industry Competition: Kraft Kellogg Dean Foods General Mills Pepsi-Co
Competitors(product launch
analytics)
Direct Competition Gatorade
“Natural” Campbell's
V8 V-Fusion + Energy Arizona Ice Tea
Coco-Zona
Improvements/Changes
We plan to substitute high fructose corn syrup to a Stevia Sweetener An all natural zero-cal sweetener used as a dietary supplement Its actually sweeter than sugar and fructose, so you can increase
taste without increasing calories It also has no carbohydrates attached so it has no side effects on
your health
Use all Natural Ingredients from real fruits Will provide natural carbohydrates vs. carbohydrates that come
from high fructose corn syrup Will also contain natural fruits such as coconut water, fruit juice,
as well as the natural electrolytes, and vitamins that come naturally from those ingredients
SustainabilityNew Bottle Materials
70% of plastic bottles end up and landfills
New bottle design will be made with Bio-plastics
Materials used Are deemed "food grade" by the FDA Create 60% less greenhouse gas Uses 50% less non-renewable energy
Cost to make is only 5-10% more than regular plastic bottles
Bottles de-compose in about 90 days
Pricing
All natural ingredients, and bio degradable plastic More expensive than regular produced beverages
Price will be competitive with our direct competitors Gatorade “Natural” $1.50 Campbell’s “V8 V-Fusion + Energy” $1.99 Arizona Ice Tea “Coco-Zona” $2.25
Prevail will be formulated to price anywhere between $1.50 – 2.50
CONSUMER PRECEPTION
In order to change consumer perception about sports energy drinks to convert them to users of “all natural” sports energy drinks we must first: Educate consumer on benefits of “all natural” drinks vs. sports
energy drinks Labels
40% increase of awareness of clearly labeled ingredients 21% more likely to buy product if detailed health benefits
are listed 22% more likely to purchase product that states “all-
natural” Noticeable difference in price
Mintel Reports see trends that consumers are willing to pay more for beverages if perceive the beverage to be a value-added product
Convey that ingredients are “all natural” Convey how the customer contributes to sustainability
Smartphone App
Powerade's Hydration Station
A free application that can be downloaded for all smartphones
User's can input personal information Height Weight Eating habits Activity levels Drinking habits
Users can punch in their daily intake of PowerAde beverages as well as regular water
The application will then tell them if they are at optimal hydration
App Integration
App will be able to connect to your FB This will help promoting Prevail as well
as Hydration Station App
In addition to the App we suggest PowerAde, re-creates a whole new website dedicated to their product lines, and staying healthy Currently there website redirects you
right to their FB page Inform customers about nutritional
information Provide ways to keep in shape
Include exercises, blogs from certified specialists, as well as diet plans
Bibliography
Data Taken from the following sources: Mintel U.S. National Library of Medicine Coca-Cola Nutrition Connection Data Monitor Nature Works LLC USA Today
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